Tesla Motors Closes $500MM Credit Facility With Deutsche, Others

The financial press reported that Tesla filed a Form 8-K filing last week with the Securities and Exchange Commission, noting that the company has raised nearly $500 million in credit from leading banks around the country, ahead of the Model X delivery commencement, set for third quarter of 2015 (3QFY15).

According to reports, Tesla has borrowed $500 million from JPMorgan, Goldman Sachs Gourp, and Morgan Stanley, while Deutsche Bank is listed as Administrative and Collateral agent for the EV maker. The 8-K report names Wells Fargo as the Documentation agent for the company. Moreover, Tesla is reported to increase the credit borrowed to $750 million on its “subject to certain conditions.”

Another major element regarding large scale borrowing is that the EV maker will bear added interest costs on the $500 million to be borrowed. The loan will reportedly carry a floating interest rate on top of the applicable margin of 1% London Interbank Offered Rate or LIBOR.

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